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Generating Income for Telecentres: [Bridging] E-Commerce Services to Small and Medium Enterprises (SMEs)
- 3. 1. 2. 3. Building Knowledge Finding Solutions and Partners Planning and Managing for Innovation, Technology and Sustainability THREE PHASES:
- 4. 2. Finding Solutions and Partners for Technology, Innovation and Sustainability • Identify partners to develop distribution channels of ICT products and services such as e-health, distance education, telecommunication solutions and many more • Identify system management solutions based on open applications • Identify solutions to lower hardware cost • Identify partners to develop applications for greater impact in the communities served by telecentres Goals:
- 6. Generating Income for Telecentres By Enabling Them to Provide E-commerce Services to Local Small and Medium Enterprises (SMEs) by Daniel Salcedo, Founder & CEO, dsalcedo@OpenEntry.com
- 7. • Telecentres are a noble approach to democratizing the benefits of ICT • Most struggle for sustainability precisely because they target users of limited means • Key is offering services to local small and medium enterprises (SMEs) that can afford to pay enough to subsidize usage by the rest of users Telecentre Sustainability
- 8. Early Promise of E-commerce • Poor people generally produce stuff to sell or work for somebody who does. More efficient markets help the poor as producers as well as consumers. • Development experts in the 1990’s, “level the playing field for the little guy” • Bill Gates – disintermediation will enable “friction free capitalism”
- 9. Everybody thought it was a technical challenge of getting SMEs online • Complicated - needed to know HTML or hire an expert or buy software • Laborious – had to hand code every catalog page instead of pulling from a database • Expensive – own domain and hosting, credit card payment required • English required • Logistics of international payment and shipping
- 10. Even if a SME managed to build a beautiful catalog… • Buyers couldn’t find it among the billions of websites on the Internet • Even if they did, they wouldn’t trust it • So, besides the technical obstacles, the main challenge of e-commerce is visibility, credibility, and trust
- 11. Recent Advances Change Everything • Proliferation of low cost devices (mobile phones, netbooks, tablets) greatly expands the hardware choices for Internet access • Internet costs continue to drop while its reach/speed increase. Corporations now offer powerful "cloud computing" services • Social networking services enable millions to publish their information with images and demonstrate the power of trusted networks
- 12. OpenEntry is a Development Organization • Mission – to help artisans and SMEs to benefit from e-commerce • Support from World Bank, USAID, IDB, Rockefeller, Oracle, eBay, individuals, more • Developed an e-commerce platform for artisans and SMEs worldwide
- 13. Free Catalogs in 44 Countries on Google Cloud Computing • Gmail - account security • Docs/Drive – information storage • Picasa - image storage • Translate – instructions in 57 languages • Checkout - also PayPal, 2Checkout • Apps Engine - execute programs on powerful/reliable Google severs • Android - offline mobile operation
- 14. Catalog Features • Build in one hour from any computer or smart phone • Multi-lingual instructions and output • Personalize with own banner/logo, choice of templates, fonts, colors • Enabled for credit cards or Request for Quote • Live User Support, chat from Nepal • FREE (100 products), $200/year for 1000 products and more catalog features
- 15. Example Catalogs Selected from Implementations in 45 countries OpenEntry.com/Catalog
- 16. Youtube video of creating a catalog www.youtube.com/watch?v=170FwlhdInI&feature=player_embedded (three minutes) To build your own free catalog, go to Catalog.OpenEntry.com
- 17. However, even if a SME builds a beautiful catalog… • Buyers can’t find it among the billions of websites on the Internet • Even if they do, they won’t trust it • The main challenge of e-commerce is visibility, credibility, and trust
- 18. OpenEntry Network Markets • Any high profile business network • Chamber of Commerce • Export Promotion Agency • Industry Association • Trade Show • Aggregates the catalogs of all its members (large & small) into a network market • Generating visibility, credibility, trust • Amazon.com EC2 Cloud Computing Facility enables scaling for mainstream business networks
- 20. Does it Work? http://goo.gl/EWd4b Does it Work? http://goo.gl/EWd4b 20
- 22. UNDP Conclusions • The largest impact of implementing this “pro-poor” e-commerce approach was on income and employment. • Firms using it reported jobs directly attributable to on-line promotion . . . 3918 women • A relatively inexperienced group of young IT professionals could, with the proper tools, create employment for themselves while providing e- commerce services to local SMEs.
- 23. Additional Considerations • Don’t need credit card payments – for every $1 transacted online, $4 are influenced by the Internet • Can start with local cash on delivery sales, 2CheckOut.com works everywhere • Most international sales are B2B • Shipping easier now - consolidated shipments can cut costs by 80%
- 24. • 100 million SMEs will need help moving online in next 10 years • Women and youth entrepreneurs earn income building catalogs for local SMEs • Modest marginal cost of including e- commerce in projects for youth, women, employment, trade Potential Impact Huge Compared to Costs
- 25. Opportunity for Telecentres • Most SME owners are busy running their businesses and often not proficient with computers • OpenEntry enables telecentres to offer paid services such as training, catalog setup and maintenance, and banner/template design • SMEs will also pay telecentres for the use of computers and digital cameras
- 26. Generating Income for Telecentres By Enabling Them to Provide E-commerce Services to Local Small and Medium Enterprises (SMEs) by Daniel Salcedo, Founder & CEO, dsalcedo@OpenEntry.com
- 27. Thank You!